The energy giant said it would cut planned investment in clean energy and redirect spending toward fossil fuels.
BP, the energy giant, said on Wednesday that it would increase spending on oil and gas while sharply paring back investments on various forms of clean energy.
The move, described as a “reset,” appears to be a response to a combination of investor pressure for higher returns and a realization that the so-called energy transition to cleaner fuels is not moving as fast as once expected.
“We found ourselves in a different place now, where nations are prioritizing affordability, assurance of flow, security of supply,” Murray Auchincloss, BP’s chief executive, told analysts on Wednesday. “The transition just is not being valued as much as it was five years ago.”
BP said it would increase oil and gas investment 20 percent, to around $10 billion per year, helping output to potentially grow modestly by 2030. At the same time, the company intends to cut spending on renewables to between $1.5 billion and $2 billion per year, a roughly 70 percent reduction from previous plans.
BP also said it would conduct what it called a “strategic review” of its Castrol lubricants business, possibly leading to a sale that could raise cash to be returned to investors.
In an interview, Kate Thomson, BP’s chief financial officer, said the moves were the result of a reappraisal of the environment for energy companies.